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2016 Supreme(Del) 3890

IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. MIDHA, J.
UNITED INDIA INSURANCE COMPANY LTD - Appellant
versus
SHASHI PRABHA ARORA & ORS - Respondents
MAC.APP. 198 of 2015 and C.M. Appl. 3441 of 2015
Decided On : 24-10-2016

Advocates Appeared:
For the Appellant :Mr. L.K. Tyagi, Advocate
For the Respondent:Mr. Asif Hashmi, Advocate

Insufficient proof of income can lead to a different calculation method for loss of dependency in determining compensation.

Headnote:

Compensation - Dependency - The court reduced the compensation awarded by the Claims Tribunal based on the insufficient proof of the deceased's income and applied a different calculation method to compute the loss of dependency. The court also set aside the penal interest and awarded a lower interest rate. The appellant was entitled to a refund of a certain amount, and the State Bank was directed to release and manage the remaining compensation amount in a specific manner.

Fact of the Case:

The appellant challenged the award of the Claims Tribunal, which granted compensation to the claimants following the death of Bhim Sen Arora in an accident. The deceased was a Sales Manager and was survived by his widow and two sons.

Finding of the Court:

The court found that the income of the deceased was not sufficiently proved and applied a different calculation method to compute the loss of dependency. The court allowed the appeal, reduced the award amount, set aside the penal interest, and awarded a lower interest rate. The appellant was entitled to a refund, and the State Bank was directed to manage the remaining compensation amount in a specific manner.

Issues: Insufficient proof of the deceased's income, calculation method for loss of dependency, penal interest, refund entitlement, and management of the remaining compensation amount.

Ratio Decidendi: The court's decision was influenced by the insufficient proof of the deceased's income, leading to a different calculation method for loss of dependency. The court also considered the appellant's entitlement to a refund and directed the State Bank to manage the remaining compensation amount in a specific manner.

Final Decision: The court allowed the appeal, reduced the award amount, set aside the penal interest, awarded a lower interest rate, entitled the appellant to a refund, and directed the State Bank to manage the remaining compensation amount in a specific manner.

JUDGMENT :

1. The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.17,31,000/-has been awarded to claimants/respondents No.1 and 3.

2. The accident dated 02nd September, 2013 resulted in the death of Bhim Sen Arora. The deceased was aged 55 years at the time of accident and was survived by his widow and two sons who filed claim petition before the Claims Tribunal. The deceased was working as a Sales Manager in a private firm at the time of accident. It was claimed that the deceased was earning Rs.17,000/-per month apart from commission of Rs.5,000/-per month.

3. The Claims Tribunal took the income of the deceased as Rs.17,000/-per month, deducted 1/3rd towards his personal expenses and applied the multiplier of 11 to compute the loss of dependency at Rs.14,96,000/-. The Claims Tribunal awarded Rs.1,00,000/-towards loss of love and affection, Rs.1,00,000/-towards loss of consortium, Rs.25,000/-towards funeral expenses and Rs.10,000/-towards loss of estate. The total compensation awarded is Rs.17,31,000/-.

4. Learned counsel for the appellant urged at the time of hearing that the income of the deceased has not been sufficiently proved with documentary evidence and, therefore, the minimum wages of Rs.9,386/-be taken into consideration. It is further submitted that the penal interest of 12% per annum be set aside. Learned counsel for respondents No.1 to 3 submits that the employer came in the witness box and proved the certificate Ex.PW-2/1.

5. This Court is of the view that the income of the deceased has not been sufficiently proved. The income of the deceased is, therefore, taken as Rs.9,386/- in respect of a skilled worker and 30% is added thereon towards inflation. The income of the deceased is taken as Rs.12,202/-(Rs.9,386/-+ 30% of Rs.9,386/-). Taking the income of the deceased as Rs.9,386/-, adding 30% towards inflation, deducting 1/3rd towards the personal expenses, applying the multiplier of 11, the loss of dependency is computed as 10,73,776/-. Adding compensation for loss of love and affection, loss of consortium, funeral expenses and loss of estate, as awarded by the Claims Tribunal, the total compensation is computed as Rs.13,08,776/-.

6. The appeal is allowed and the award amount is reduced from Rs.17,31,000/-to Rs.13,08,776/-. The penal interest @ 12% is set aside and the interest @ 9% per annum is awarded.

7. The appellant has deposited the entire award amount with State Bank of India, Saket Court Branch, out of which some amount was released to the respondents and the balance is lying in FDRs with State Bank of India, Saket Court Branch.

8. As per Accounts Officer of this Court, the appellant is entitled to refund of Rs.2,03,759/-. State Bank of India, Saket Court Branch is directed to refund Rs.2,03,759/- to the appellant.

9. State Bank of India, Saket Court Branch is directed to release 10% of the balance amount to respondents no.1 and 3 in equal shares by transferring the same to their individual savings bank accounts and keep 90% in FDRs in the following manner:

10. The monthly interest on all the FDRs shall be paid to respondents No.1 and 3 by transferring the said amount to their individual savings bank accounts.

11. At the time of maturity, the fixed deposit amount shall be credited in the individual savings bank accounts of the claimants/beneficiaries.

12. All the original FDRs shall be retained by State Bank of India, Saket Court Branch. However, the photocopies of the same shall be provided to the claimants/beneficiaries.

Sr. No.

Duration of FDR

Resp. 1 Widow

Resp.3 Son

1.

1 yr

10%

5%

2.

2 yrs

10%

5%

3.

3 yrs

10%

5%

4.

4 yrs

10%

5%

5.

5 yrs

10%

5%

6.

6 yrs

10%

5%

TOTAL

60%

30%

Grand Total

90%

13. No cheque book or debit card be issued to the claimants/respondents without permission of this Court.

14.







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